Notorious short seller Hindenburg Research is at it again. This time the target is Lordstown Motors Corp. (NASDAQ: RIDE).
In 2020, Hindenburg exposed alleged lies and fraud behind electric truck maker Nikola Corporation (NASDAQ: NKLA). NKLA stock peaked at $94 per share but has since fallen as low as $13.50.
The stories have many parallels. Both are companies that claim to manufacture and sell alternative energy trucks. Both went public through SPACs in 2020. And now both have been attacked by Hindenburg.
Lordstown’s CEO Steve Burns told Yahoo! Finance last month that the company had “pre-sold 100,000 of these vehicles to various fleets across America.”
But in the report, Hindenburg alleges that “the company’s orders are largely fictitious.”
One example provided by Hindenburg is a “14,000-truck deal from E Squared Energy, supposedly representing $735 million in sales.” But Hindenberg alleges that “E Squared is based out of a small residential apartment in Texas that doesn’t operate a vehicle fleet.”
It doesn’t appear that company insiders are strong believers in the stock, either.
According to the report, “executives and directors have unloaded ~$28 million in stock” since the company went public in October of 2020.
At writing on Friday afternoon, RIDE stock is trading near $14.63 per share — a drop of 16% and the stock’s lowest price since last November.
Posts contain affiliate links. Timothysykes.com may get compensated for affiliate posts and purchases through links.
Image: Kevin McGovern/Shutterstock.com
Comments (1)
Hey Everyone,
As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!
Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.
So when you get a chance make sure you check it out.
PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.